How do I even begin to describe the events of this week? Even my boss told us yesterday that this spectacular implosion offinancial marketsis something he had never seen before,oreven thought possible.Since the collapse of Wall Street giant Lehman Brothers last month, worries on economic crisis started haunting most of us. Each crisis has it own characteristic. The last time it was this far down during SARS outbreaks,there was a real solution -the cure for the disease. But this time there is none, hence the markets are just going to continue heading south.There is one source of comfort amid the global economic slowdown - falling oil prices. Black gold has plunged more than 40 per cent to around US$79 per barrel since hitting a peak of about US$145 in July, with more falls on the way, say analysts. This is the first time in a year that oil has faller below US$80 a barrel.
The financial crisis has hit the US hardest and they're the biggest petrol consumers. If this carries on, oil prices will continue to fall and could reach US$60by the end of the year.The falling price will filter down to consumers most obviously in the form of cheaper petrol, but also in other less direct ways such as reducing transport costs and therefore food prices.This crisis is a lot deeper than we think. It's going to last for a while.
It's simple economics: As the global financial crisis worsens, there's a downturn in global demand leading to the decline in prices. It's demand and supply.It's a crisis of confidence, and there's a lack of trust in the markets. Will the forthcoming US presidential election brighten the global economy? (I don't think so but yet I hope so). Let's pray for the better futurement and really hope the global financial situation will be rebounced when I wake up tomorrow.Let's see, let's feel, let's pray...
